Rep. Tom Reynolds (R-NY) on Rangel Tax Bill

By October 30, 2007Taxation

Rep. Tom Reynolds (R-NY) spoke at a bloggers luncheon today sponsored by the Heritage Foundation. A member of the House Ways & Means Committee, Reynolds concentrated on the tax proposal released this week by Chairman Charles Rangel (D-NY), including the AMT rewrite.

Key arguments from Reynolds:

  • The tax legislation reflects the Democratic Party returning to its big-government, high-taxes philosophy: “Rangel is doing the bidding for the Democrats who want more cash to spend more money.”
  • Some in the business community have been holding back on the Rangel plan, perhaps out of “pragmatism,” and Reynolds would hope they would be more vocal in their criticisms.
  • Reynolds expects the Senate to reject “paygo” provisions in the Rangel AMT fix, a position he supports.
  • Direct quote: “Even on the AMT partial fix, for a one-year tax, Charlie screwed it up.” Reynolds mentioned his letter to the Joint Committee on Taxation, asserting that Rangel’s proposal means more — not fewer — middle-class taxpayers will get hit by the AMT.
  • In the end, we’ll see another one-year AMT fix.
  • More broadly, “I believe at the end of the day we will kill this massive tax increase.”
  • More generally, Reynolds joined his Repubican collegues in characterizing Rangel’s Tax Reduction and Reform Act as a “Mother of All Tax Hikes,” even using MOTH as an acronym. And he contended that House Speaker Pelosi and other Democratic leaders are building distance between themselves and Rangel’s proposal. Reynolds

    No matter what your opinion of Chairman Bill Thomas, when he had a trial balloon, he sent some unsuspecting subcommittee chairman to stand by him. Here’s Charlie Rangel – by himself – not one senior Democratic Ways & Means person or leadership in that room. It’s Rangel by himself the Monster MOTH, for Halloween, and that is the Mother of All Tax Hikes, which many in House leadership and others on Ways & Means have used, the Mother of all tax hikes. …

    Charlie promised a lot of things and he has delivered on this one, I’m going to send you a $1.3 trillion tax increase, that as we’re beginning to see Ways & Means and others analyze, we’re seeing as nothing but heartburn and heartache, not only for personal tax filers, as well as corporate America, and will be very detrimental to us for global economy activity. My concern for corporations, we’re almost telling them, “Why don’t you move [overseas] for a better tax policy than you’ll have in your own country.”

    Joe Mansour blogged on the gathering, which also included Ann Coulter via telephone, with a partisan take.

    It was our first time to attend the weekly Heritage gathering, organized by Rob Bluey. A good outreach event, and we’d certainly welcome a similar invitation from a liberal think tank, too.

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